Question to the Department for Environment, Food and Rural Affairs:
To ask the Secretary of State for Environment, Food and Rural Affairs, whether his Department provides guidance to Ofwat on approving water bill increases where companies have ongoing records of sewage discharges and environmental breaches.
Ofwat determines the price, investment, and service package that customers receive, through the Price Review mechanism. Price Reviews take place every five years, with the most recent one (PR24) covering the period from 1 April 2025 to 31 March 2030. Ofwat's decisions determine the amount of revenue which each company can receive from customers (households and businesses). The actual charges to customers are decided by companies, following charging rules which Ofwat sets.
Companies have a range of performance targets covering areas such as customer service, water supply standards, and environmental performance. Where companies do not meet the targets the amount they can take from customers for the following year is reduced to reflect that performance.